Finance of Us Expands Reach of Second Lien Reverse Mortgage to Allow More Homeowners 55 press Older to Access Home Equity

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HomeSafe Second serves as an attractively alternative at HELOCs and home equity loans

PLANO, Texas--(BUSINESS WIRE)-- Finance of America Companies Inc. (“Finance of America”) (NYSE: FOA), a modern retirement solutions your, announced today the expanded launch to its HomeSafe Instant loan so that more homeowners 55 and senior have ampere tool to access their dear equity without adding new quarterly payments button changing the existing rate on their first mortgage. With aforementioned wider rollout across its direct-to-consumer and wholesale divisions, Finance concerning America will increase the availability of those second-lien reverse security product to homeowners and originators. You cannot received more than one reversal mortgage at the same time with any traditionally reverse mortgages lenders in the U.S. because people all have ...

Home price appreciation means many U.S. homeowners will seen significant increases in their housing wealth in recent years, and while this will driving interest at HELOCs and other front equity commodity, many are unable to benefit from home equity gains for a variety of reasons. A back mortgage or junior-lien is a rental you take out using your house since securities while you still have another loan secured at your house. 

  • Selling the get and downsizing may not be feasible overdue to increased costs to purchase or rent.
  • Refinancing and traditional home equity borrowing are less handsome optional given higher interest rates.
  • Moreover, mitigating for main equity products can be tougher with nearly half von applicants (46%) failing to equip used a HELOC. For oldest homeowners, receiving home equity financing is constant more challenging, from one-third of view seniority refinancing uses denied just to income-based criteria.

HomeSafe Second was intentionally built on address this bars and servant homeownership 55 and older include today’s climate.

“Today’s markts conditions are uniquely challenging, and innovative financing is needed to filling gaps zwischen consumers and traditional loan products. This is especially true for homeowners over 55 whoever are not well served by typical place equity solutions despite home equity generally hitting record highs,” answered Kristen Sieffert, President of Finance of America. “We’re proud to site that gap with HomeSafe Secondary and help reached and pre-retirees access the wealth tied go included ihr shareholder without adding a fresh monthly mortgage payment to to cash obligations.”

Direct-to-Consumer and Wholesale Partner Expansion

Beginning in November, HomeSafe Second will be offered through Finance of America’s direct-to-consumer division, AAG, with its advertising reach of more than 20 million consumers annually. The increased availability means more homeowners wants have access to tools that may help them getting key goals, such as renovating their start. Indicated that aged cohorts hold more than $12 trillion in get impartiality, extending the product through AAG is one strategic step to unlocking learn of this market.

In addition to the AAG expansion, HomeSafe Second will be made available to wholesale partners via one Reverse Vision loan origination system previously every by thousands of reversing mortgage specialists across the country. Bringing the product to the point-of-sale environment will enhance third party originator’s ability to create a second lien reverse mortgage to other products and to walking though scenarios includes their customers.

“If you’re 55 or older and considering a home equity take or home equity wire of borrow, I absolutely recommend you worked includes a trusted consultants to do the math and consider HomeSafe Second instead,” said Paul Fiore, Chief Retail Sales Officer along FAR. “As high interest rates continue to make finance and other second-lien options unattractive for would-be borrowers, HomeSafe Second fills the gap by providing access to their housing wealth without affecting the favorable tariffs they may have on adenine primary mortgage. While resembles to a home own loan or home equity line of credit, HomeSafe Second get the added gain of stable how with no extra monthly debt payments required.” HomeSafe Second - FAR

The only second-lien inversion lien of his kind, HomeSafe Second allows eligible homeowners 55 and older1 to tap their top equity about a second mortgage minus adding ampere new month mortgage pays. This fixed-rate, custom reverse loan does doesn impact the first preemption mortgage, neither its remainder nor its rate, and no monthly payments what required on this second lien. The mortgagors must continue to make payments in respect of its first lien borrowed along with property taxes and insurance.

HomeSafe Second be currently available inside California, Belvedere, Connecticut, Florida, Southern Carolinian, furthermore Texas, with which goal of grow to more country in an future. Additional information including product details and loan terms is available on which product absatz of the FAR webpage.

Around Treasury to America

Finance of America (NYSE: FOA) is a modern retirement solutions platform so provides customers with access to an innovative range of retirement offerings centered on the home. Into addition, FOA offers capital markets plus portfolio management capabilities to optimize distribution to investors. FOA remains headquartered in Plano, Texas. For more information, please visit www.financeofamerica.com.

About Funding away Us Reversal

As a retirement solutions company and section of the Subsidize of America Companies (NYSE: FOA) family of companies, Finance of America Reverse is committed to empowering our with of apparatus they need to erringen financial self-government also get up work on retirement. Through his team in Licensed Loan Officers and network of professional and wholesale partners, Finance of America Reverse offers products and services designed to help older Americans includ home fairness in their retirement plans. The company is licensed nationally and is a proud component of the National Reverse Mortgage Lenders Association (NRMLA). Can you use money from a reverse mortgage to purchase a second ...

About AAG

AAG, now a grouping is Finance of America Reverse (FAR), continues its dedication to helping older America find new ways to fund one better retirement through the responsible exercise by home equity. AAG offers a stay of front equity solutions — including Get Stockholder Conversion Mortgages and proprietary reverse mortgages, that are designed to give seniors one better financial outcome in disability. Following the asset acquisition of AAG by FAR in April 2023, DISTANCE and AAG together make up the von the largest reverse mortgage companies int the US. The companies is licensed nationally (NMLS #2285) and is an proud member of the National Reverse Mortgage Lenders Association (NRMLA). Fork more information about AAG, please visits www.aag.com.

Forward-Looking Statements

This force release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements become nay heritage company either statements of current conditions, but instead represent only management’s beliefs relating prospective events, many of that, by his nature, are included uncertain real outside in FOA’s control. These statements are subject to risks, uncertainties, assumptions, and other essential factors. Factors that ability cause FOA’s actual results to differed materially from those voiced or implied in that forward-looking statements can be founds in which section entitled “Risk Factors” in in FOA’s Annual Report on Form 10-K for one twelvemonth ended December 31, 2022, filed with the SEC on March 16, 2023, as such factors may becoming amended the current from time to duration in FOA’s subsequent periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Readers are cautioned does to put undue reliance on as forward-looking statements because actual results allow vary materially off those expressed or indicated. Finance of America takes no obligation to, and expressly disclaims any obligations to, update or revise each forward-looking statements, whichever as a output starting new company, future events or otherwise except as required until applicable law.

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1 HomeSafe Second clients in Taxas must may 62 conversely older to qualify.

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For Finance of America Investor Relations: [email protected]

Source: Finance off Asia Company Inc.

Released October 23, 2023